nesting, you got to realize ARM’s, no money down loans, are really tools for the high income folks to maximize their tax deductions and redirect their cash money for properly thought out investments, real estate or otherwise.
these tools are supposed to be earned, thru high FICO’s and high earning power. these loans were not designed to be readily given out to joe q public making the median income. but in the last 5 years they became that way. did you read the 4Closure Ranch Part V? that guy’s ‘supersize my jumbo loan’ package allowed for any guy with a 600 FICO to get over a million dollar loan. this is what drove the bubble and this will also lead to the bust.
I’m very bullish on real estate. long term! but there is no reason to buy near the speculative top when the slide is just getting started.
